Key Insights:
- Analysts predicted that PancakeSwap (CAKE) price could deliver a minimum of 5x returns as the token exits the accumulation range.
- First take profit target set at $23, marking a new all-time high in market cap.
- BNB reached a new all-time high at $1,350 on Oct. 7, up 6.9% in 24 hours.
PancakeSwap (CAKE) positioned itself for substantial gains as multiple analysts identified bullish patterns, with predictions ranging from immediate targets of $23 after potential 5x returns in the coming months.
As of press time, CAKE traded at $4.42, up by 17.5% in the past 24 hours.
PancakeSwap (CAKE) Price Eyes $23 First Target After Accumulation Phase
Crypto analyst Crypto Tony noted a bullish thesis for CAKE on Oct. 6, stating the token appeared ready to exit its accumulation range and enter wave 3 of an Elliott Wave pattern.
The analyst projected “minimum 5x returns” from current levels, with the token trading at $3.716 at the time of his analysis.
Trader ZIL signaled that $23 is his first target to take profits, a level that would establish a new all-time high in market cap for CAKE.
The target aligned with the 0.5 Fibonacci retracement level, a technical indicator used by traders to identify potential reversal points. The analyst’s chart showed CAKE building a base around current price levels before the anticipated breakout.
PancakeSwap Price Resistance Targets
Trader Knight identified a breakout scenario for CAKE, with multiple resistance levels drawn on a multi-year chart.
The analysis revealed that CAKE has been trading in a prolonged consolidation zone since its 2021 peak, with volume patterns indicating accumulation by larger players.
The chart indicated a potential explosive move higher if CAKE broke above key resistance zones.
The weekly timeframe analysis revealed that CAKE was forming a base pattern similar to those that preceded previous rallies.
Additionally, volume profiles displayed in the charts revealed minimal selling pressure at current levels, with significant buyer interest potentially waiting at higher price points.
Knight also identified resistance targets along the way to the bullish five-fold price increase. The first is at $5.39, followed by the next threshold at $7.25 and $8.97, the last resistance before two digits.
The following targets to remain cautious are $10.82 and $12.68. Knight also pinpointed resistance action on $14.90, $17, and $18.97. Clearing this last resistance would put CAKE towards $20.95, over five times the price of $4.01 at the time of his analysis.
Moreover, Trader Alex Clay identified an Adam and Eve bullish formation on CAKE’s monthly chart, a pattern known for producing substantial rallies.
The formation featured a sharp V-shaped decline (Adam) followed by a rounded bottom (Eve), with PancakeSwap price currently breaking out from the Eve portion.
Clay predicted CAKE would “pump huge” based on this classic reversal pattern. The Adam and Eve formation typically signals a shift from bearish to bullish market structure, with the rounded bottom indicating gradual accumulation by informed buyers.
BNB Rally Fuels Optimism for Binance Ecosystem Tokens
The bullish outlook for CAKE received additional support from BNB’s strong performance. While the total cryptocurrency market cap contracted by 2% on Oct. 7, BNB registered a new all-time high at $1,350.
As of press time, BNB traded at $1,307.12, representing a 6.9% gain in the past 24 hours.
Altcoin Sherpa highlighted that BNB-associated tokens, such as CAKE, currently present the most attractive trading opportunities.
The analyst’s observation reflected growing market attention on the Binance Smart Chain (BSC) ecosystem as BNB continued to push to new highs.
Additionally, Aster is also capturing significant mindshare among traders. The native token for the largest BSC decentralized exchange for perpetual contracts has increased by 28.5% over the past seven days, with traders awaiting its next move.
Altcoin Sherpa described Aster’s current momentum as “strong as hell,” noting that $2.14 is a key resistance that needs to be turned into support for a run towards $2.43.
Taking the spotlight also fueled a surge in BSC’s memecoins, which had surpassed $21 billion in trading volume as of press time, according to DEX Screener.
The flywheel of attention created by multiple surges in different areas of the BSC ecosystem could also sustain a CAKE rally to the next resistance at $5.39.